Hudong shipyard to build Qatari LNG carriers

Qatar's state-owned QP has reserved capacity at China's Hudong Zhonghua shipyard for the construction of LNG carriers to serve its North Field expansion plans.

QP has made the reservation to 2027 for the construction of a number of LNG carriers, each with a design capacity of 174,000m³. The total order could be worth up to 11bn Qatari riyals ($3.02bn), energy minister and QP chief executive Saad Sherida Al-Kaabi said.

Qatar will need a significant number of new LNG carriers as it expands its 77mn t/yr Ras Laffan liquefaction complex to 100mn t/yr, with the first new train to be completed by the end of 2024, and 126mn t/yr by 2027. QP began drilling for the expansion earlier this month.

Hudong is the first yard to receive orders from QP, which is widely expected to make 60-100 new vessel orders. Hudong can build around 12 LNG carriers a year.

The vessel size in QP's agreement is smaller than much of the firm's existing fleet, which may increase the number of import terminals that QP can deliver to. The firm's existing fleet mostly consists of Q-Flex and Q-Max vessels, which are restricted to those ports that can receive them.

The LNG shipping market has coalesced around 174,000m³ vessels in recent years, which make up the bulk of the global orderbook. Hudong has developed its own ‘G4+ Changhui' series of 174,000m³ carriers.

But with South Korea's three major LNG shipbuilder also vying for orders related to the North Field expansion, QP may still place orders for larger vessels. All three — which include Samsung Heavy Industries, Daewoo Shipbuilding and Marine Engineering (DSME) and Korea Shipbuilding and Offshore Engineering — have previously built Q-Max and Q-Flex vessels for QP's existing fleet.

QP is due to receive four 173,400m³ LNG carriers in 2020-21 from DSME, under Qatari shipowner Nakilat's joint venture with Greek shipowner Maran Gas Maritime.

By Samuel Good

source: Argus Media